Wall Street Addict

Summary: Subprime-leery investors avoid financial/lending stocks lately, especially US-centric ones like Raymond James Financial (NYSE: RJF - News). But RJF has no subprime exposure, has recorded 20% higher net income and a 41% revenue increase in Q2 from rising deposits—not loans. Bank revenue should contribute $0.19/share in 2008 profits, up from a previously forecast $0.12/share, where $0.35/share is expected for 2009. Though RJFs $31 shares trade at a relatively expensive 13.5 P/E or 2.4 book value, that's offset by $3/share in cash and equity. That's roughly 11% of total assets vs. big brokers like Merrill Lynch (NYSE: MER - News) and UBS (NYSE: UBS - News) with just 3%. RJF should actually benefit from Wachovia's (NYSE: WB - News) buyout of rival A.G. Edwards (NYSE: AGE - News) as former AGE brokers go looking for better pay packages, taking their commissions with them. Operational streamlining has led RJFs 4,640 financial advisors to generate 40% more revenues/assets per advisor since 2004. Analysts have largely missed the $3.7 billion cap company's potential as the largest independent brokerage house. CEO Thomas James says RJFs not for sale, but bulls say the stock could reach $37-$38, or even $40 if the buyout price is right.
Published by SeekingAlpha

Labels: AGE, Barron's, MER, RJF, UBS, WB

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
Gaps Down 5% or More: These are stocks that gap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that gap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Atheros Communications (NasdaqGS:ATHR - News). ATHR's PowerRating is 7.
Laps Down 5% or More: These are stocks that lap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that lap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Terra Nitrogen (NYSE:TNH - News). TNH's PowerRating is 8.
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge. Historically, these stocks have provided traders with a significant edge.
Baidu.com (NasdaqGS:BIDU - News). BIDU's PowerRating is 10.
5+ Consecutive Lower Lows: These are stocks that have made a lower low for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that make lower lows for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Intercontinental Exchange (NYSE:ICE - News). ICE's PowerRating is 8.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
A.G. Edwards (NYSE:AGE - News) & Bank of New York (NYSE:BK - News). AGE's PowerRating is 7, and BK's PowerRating is 7.
Bearish
5+ Consecutive Up Days: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Neurochem (NasdaqGM:NRMX - News). NRMX's PowerRating is 3.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: AGE, ATHR, BIDU, BK, Hot Stocks, ICE, NRMX, TNH

Stock prices are higher in early trading today with the Dow Jones industrials up 22.43 to 13,655.51, the Nasdaq Composite higher by 11.11 at 2,603.70 and the Standard & Poor's 500 up 3.59 at 1,533.82. Wall Street received another batch of acquisitions but mixed news on the economy. Later Thursday morning, the Commerce Department will report on construction spending, which is expected to have slipped 0.1 percent in April after rising 0.2 percent in March. The Chicago Purchasing Managers will release its manufacturing index. Economists predict the Chicago PMI to have risen to 54.0 in May from 52.9 in April.
Investors hope the economy will keep expanding, but not so fast that it prevents the Federal Reserve from lowering interest rates later this year. Stocks soared Wednesday when minutes from the Fed's latest meeting indicated the central bank is not inclined to make a rate hike.
While Wall Street is unsure about the economic outlook, it remains buoyed by the unrelenting surge of takeover activity. On Thursday, banking company Wachovia Corp. said it would acquire A.G. Edwards Inc. for $6.8 billion in cash and stock to form one of the largest retail stock brokerages in the country. And payroll processor Ceridian Corp. said late Wednesday it will be bought out by investment firm Thomas H. Lee Partners LP and insurance provider Fidelity National Financial Inc. for about $5.3 billion.
Meanwhile Thursday, discount retailer Costco Wholesale Corp. and jewelry seller Tiffany & Co. released their financial results. Costco posted a fiscal third-quarter profit decline of 4.9 percent, while Tiffany reported a 15 percent rise in fiscal first-quarter profit -- indicating that consumer demand for big-ticket items remains robust.
Retailer Sears Holdings Corp. reported a solid 20 percent gain in earnings from the recent quarter, but said its U.S store sales dropped.
The dollar was mixed against other major currencies, while gold prices rose.
Crude oil futures fell 39 cents to $63.18 a barrel in preopening electronic trading on the New York Mercantile Exchange, ahead of data on U.S. petroleum inventories.
Chinese stocks rebounded a bit Thursday after a sharp drop a day earlier. The Shanghai Composite Index rose 1.4 percent.
Japan's Nikkei stock average rose 1.63 percent. In afternoon trading, Britain's FTSE 100 was up 0.51 percent, Germany's DAX index was up 1.47 percent, and France's CAC-40 was up 1.07 percent.
Source: AP

Labels: AGE, CEN, COST, FNF, TIF, WB